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A signed document that says you've borrowed a certain amount of money to buy a house. The note will list the interest rate and when you should pay off the loan. Mortgage Servicer: A company that manages a mortgage loan, including collecting payments. While this could be the original lender, it doesn't have to be.
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The loan counts as an asset to the bank and it is simultaneously offset by a newly created deposit, which is a liability of the bank to the depositor holder. Contrary to the story described above, loans actually create deposits. Now this may seem a bit shocking since, if loans create deposits, then private banks are creators of money.
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